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IPFS News Link • Central Banks/Banking

Central Bank Digital Currency

• By Nicholas Anthony

Central banks around the world are actively exploring central bank digital currencies (CBDCs). In fact, several central banks have now launched their own CBDC. Yet these efforts have struggled to gain traction among citizens. While CBDC proponents present many potential benefits, those benefits do not stand up to scrutiny. In short, these proponents fail to meaningfully distinguish CBDCs from the digital dollars that exist today. Yet CBDCs are not just a story of government waste or cronyism. While CBDCs don't offer any unique benefits to the American people, they do pose serious risks to financial privacy and economic freedom. From expanding financial surveillance to destabilizing the financial system, CBDCs could impose enormous costs on U.S. citizens. Put simply, there is no reason for the federal government to issue a CBDC when the costs are so high and the benefits are so low. Congress should ensure that the federal government does not issue a CBDC.